John Wood Group sees ‘good growth’ in 2014 on U.S. shale
BY NIDAA BAKHSH
ABERDEEN, UK (Bloomberg) -- John Wood Group Plc sees “good growth” this year after the oil and gas services company expanded in the U.S. shale industry through acquisitions.
Spending and “the contribution of completed acquisitions is expected to lead to growth overall,” CEO Bob Keiller said. Wood Group has 4,500 people working on U.S. shale, he said. Aberdeen, Scotland-based Wood Group today posted a 14 percent gain in 2013 pretax profit to $412.8 million.
It rose as much as 5.7 percent, the most since March 5, and was up 5 percent at 710 pence by 9:30 a.m. in London.
A “slower pace” of significant offshore contracts after customers curtailed spending and completion of major projects will be countered by expected growth in subsea and pipeline business in the engineering unit, the group said in a statement.
The company agreed last year to buy Elkhorn Holdings, a Wyoming-based provider of construction services for midstream oil and gas facilities in the U.S. shale market. It also expects to complete a joint venture with Siemens AG in the so-called GTS power business in the first half, according to the statement.
The company is agreeing on an exit plan in Oman after its contract there continued to lose money, the company said.